Physical Sciences Inc. (PSI) proposes to develop and commercialize a new type of ophthalmoscope based upon the principles of the confocal Scanning Laser Ophthalmoscope (SLQ). Though the confocal SLO has many valuable diagnostic capabilities, commercially available devices are large, expensive and are impractical for field applications. In the proposed Phase l program, PSI will design and demonstrate a scanning laser imaging device, using a simpler, potentially compact optical design, off-the-shelf components, and many fewer moving parts than current SLO instruments. Based on this work, the requirements for a compact prototype will be specified. In Phase II, we will develop and test a compact engineering prototype device for clinical demonstration and commercial development. This device will be suitable for fundus examination under a wide variety of conditions, including field and emergency medical uses. The Phase II prototype will incorporate simple psychophysical examination capabilities, multi-wavelength and stereoscopic imaging, and will be useable for examination of the anterior segment of the eye. PROPOSED COMMERCIAL APPLICATION: The successful outcome of the proposed research would lead to improved diagnostic systems for the early detection and diagnosis of retinal disease and other visual disorders. The proposed approach will result in a new class of inexpensive, clinical confocal imaging instruments, and increase the applicability and commercial value of SLO-related devices.